For Release: October 5, 2004
FTC Shuts Down Deceptive Spam Operation
"Business Opportunity" Turns Out To Be Illegal Scam
An operation that used illegal spam to promote a bogus get-rich-quick scheme has been
shut down by a U.S. District Court at the request of the Federal Trade Commission. The FTC
alleged the spammers violated federal laws by using deceptive header information and subject
lines in their spam solicitations, making bogus earnings and refund claims, and withdrawing funds
from consumers' checking accounts without authorization. The FTC will seek to shut down the
operation permanently and will seek redress for consumers.
According to the FTC, the operation spammed consumers with e-mail that claimed that
they could make substantial income by signing up for the spammers' work-at-home business
opportunity. The e-mail contained claims like, "Do you think you would be interested in
becoming a permanent home-based worker for our company and earning an extra Guaranteed
$30k to $100,000 A Year?" In their e-mail, the defendants represented that consumers could
obtain a "home mailing kit" for a "shipping and handling" fee of $24.77; that the defendants
would pay consumers $4 for each envelope they stuffed and mailed; and that the offer was backed
by a 30-day, money back "NO QUESTIONS ASKED" guarantee. According to documents filed
with the court, however, the "kit" received by most consumers was a two-page letter and a CD-ROM showing consumers how to perpetuate the defendants' scam. Consumers who tried to get
the defendants to honor the "30-day, money-back guarantee," were ignored, falsely told that the
returned material was damaged, or told they failed to act within the 30-day trial period. One
consumer was told he would be reported to the police for harassment if he contacted the "call
center" again.
The defendants claimed that in addition to the initial "shipping and handling" fee of
$24.77, consumers would be charged a $24.95 "registration fee" only after their 30-day trial
period expired. Consumers who signed up for the home mailing program, however, often found
their bank accounts debited for the entire $49.72 amount immediately. In other instances, the
defendants withdrew this amount twice. Consumers who complained about these unauthorized
withdrawals rarely succeeded in obtaining refunds.
The FTC alleged that the defendants' spam contained altered or "spoofed" header
information falsely indicating that the message had been transmitted "from" either the recipient's
own e-mail account or the account of an unrelated third-party. Other messages contained "reply-to" fields with e-mail addresses registered to unrelated third parties, or with e-mail addresses that
the defendants got using phony names and addresses. The FTC also alleged that the defendants'
e-mail messages contained deceptive subject lines to induce recipients to open them.
The FTC alleges that these practices violate the FTC Act, the Controlling the Assault of
Non-Solicited Pornography and Marketing Act of 2003, and the Telemarketing Sales Rule. The
FTC has asked the court to bar the illegal practices permanently and to order redress for
consumers.
The Commission vote to authorize staff to file the complaint against Gregory Bryant, Jr.,
Nadira Bryant, Gregory Bryant & Associates, Dove Marketing Corporation, GBA Publishing,
GBA Financing, Network Marketing, Miracle Moms, and DM Marketing services was 5-0. The
complaint was filed in the U.S. District Court for the Middle District of Florida, Jacksonville
Division.
NOTE: The Commission files a complaint when it has "reason to believe" that the law has been
or is being violated, and it appears to the Commission that a proceeding is in the public interest.
The complaint is not a finding or ruling that the defendant has actually violated the law. The case
will be decided by the court.
Copies of the complaint are available from the FTC's Web site at http://www.ftc.gov and
also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive,
and unfair business practices in the marketplace and to provide information to help consumers
spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are
available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and
other fraud-related complaints into Consumer Sentinel, a secure, online database available to
hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Claudia Bourne Farrell
Office of Public Affairs
202-326-2181
STAFF CONTACT:
Daniel R. Salsburg
Bureau of Consumer Protection
202-326-3402
(FTC File No. 042-3125)
(http://www.ftc.gov/opa/2004/10/bryant.htm)
|
Related Documents:
Gregory Bryant, Jr., an individual, d/b/a Gregory Bryant & Associates, Dove Marketing Corporation, GBA Publishing, Inc., GBA Financing, Network Marketing, Miracle Moms, and DM Marketing Services, and Nadira Bryant, an individual, d/b/a Gregory Bryant & Associates, Dove Marketing Corporation, GBA Publishing, Inc., GBA Financing, Network Marketing, Miracle Moms, and DM Marketing Services, Defendants., Federal Trade Commission v., United States District Court, Middle District of Florida, Jacksonville Division, FTC File No. 042 3125
|